Law and regulationEvent
President signs amendment to the Act on Renewable Energy Sources: longer support for biogas plants, licences from 1 MW
On 5 October 2021 the President signed an amendment to the Act on Renewable Energy Sources (act of 17 September 2021, Journal of Laws (Dz.U.) 2021, item 1873): FIT/FIP until 30 June 2024, the possibility of extending auctions to 2027 and a licensing threshold of 1 MW.
Other language versions: polski.
On 5 October 2021 the President signed an amendment to the Act on Renewable Energy Sources – the act of 17 September 2021. The amendment extends the feed-in tariff and feed-in premium (FIT/FIP) systems to 30 June 2024, makes it possible to extend the auction system to the end of 2027, and raises the licensing threshold for small installations. For owners of agricultural biogas plants this is the most important legal change in years.
Main changes
| Area | Change |
|---|---|
| Auction system | possibility of extension to 31 December 2027 (subject to European Commission approval); schedule of volumes for 2022–2027 set by regulation, with no possibility of reduction |
| FIT/FIP | extended to 30 June 2024, in line with the maximum resulting from the EU General Block Exemption Regulation (GBER) |
| Licences | threshold for electricity raised from 0.5 to 1 MW; for heat in cogeneration from 0.9 to 3 MW; generators meeting the criteria will be entered in the register of small-installation generators |
| Biogas plants and small hydropower plants up to 1 MW | an additional 2 years of support under FIT/FIP after at least 5 years in the certificates of origin system; total period of up to 17 years |
| Spatial planning | threshold for installations sited without inclusion in the land-use study raised from 100 to 500 kW (photovoltaics on class V and VI land and wasteland – up to 1000 kW) |
The ministry estimated that more than 400 hydropower plants and about 80 biogas installations would benefit from the additional FIT/FIP support. Since 2016 the auction system has covered more than 209 TWh of electricity, and payments to generators exceed PLN 50 billion over the 15-year support periods.
Significance for biogas
The amendment restores a planning horizon that was missing in the second half of 2021, as the end of the previous system approached. For installations whose support periods in the certificates of origin system are ending, an additional two years of FIT/FIP means the possibility of stable revenue during the transition period. Raising the licensing threshold to 1 MW reduces the formal burden for most agricultural biogas plants.
The act does not, however, contain provisions for biomethane. These were being worked on separately by the Ministry of Climate and Environment as part of talks with the industry that began with the letter of intent of October 2020.
What next
Extending the auctions to 2027 requires a European Commission decision on compliance with state aid rules. Until it is obtained, the existing rules apply. The act enters into force 14 days after publication, and some provisions later. Investors should follow announcements by the Energy Regulatory Office (URE) on auctions and the deadlines for submitting declarations to the FIT/FIP systems.
What to watch once the rules enter into force
Installation owners should check whether their facility meets the condition of at least five years of using certificates of origin, which documents must be submitted to the President of URE, and what deadlines apply to declarations. It is also worth verifying whether the change in the licensing threshold requires updating entries in registers and agreements with the grid operator.
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